American Express Membership Rewards - Booking thru FHR costs more than direct?

I see a lot posted here about FHR and some savings, plus the benefits. Having tried in the past and getting higher rates than booking on my own, I decided to give it another try for an upcoming stay in LAS. Most of the trip has been comped at the Venetian, so we decided to venture out and try something new. Checked out the following hotels online, and got rates, then called FHR for rates, both times stating 2 adt, 1 child (per room per nt, 2 nts, Sun and Mon):

Four Seasons (Std):

Online: $275 for each of 2 pkgs, the minimum of which gives $50.00 hotel credit (other pkg value added about $75) credit is per DAY, not STAY
FHR rates: $265 (slightly less but definitely more when taking credit into consideration)

Bellagio (Std):
Online: $204
FHR: $204 identical rate.

Skylofts (1 bdrm):
Online: $990/$1190
FHR: $1000/$800 Definitely the BEST deal from FHR, but I was told by FHR that I could not book a 1 bedroom with my daughter, where direct I was told they could arrange a rollaway for her.

And the kicker!
Wynn (std):
Online: $179 for 3 - Reserved later.
FHR: First call $161 per night (seemed great BUT..)
Called Back to Book: Now $215 per night, to which I almost agreed to BUT......
When we actually took it thru, it was raised to $266 per night, told it was just the FHR rate, but I suspect there was an extra person rate now tacked on. BIG jump from the $161 quoted only 1 hr earlier.

First of all, in that time, there were no changes to rates being quoted directly thru the hotel, and I was able to book at the original rate. I understand an extra person rate (it's Vegas afterall), but on first call was told that included our daughter, and on making reservation online, it clearly says 2 adts, 1 chd for the above rate $179.

Secondly, when we asked about the $100+ rate jump, we were told "thats the extra fee you pay for your FHR benefits". Now come on, since when is continental breakfast and a lunch for 2 worth more than $200? And even with the promise of an upgrade, the Tower Suite was booking online for less than the FHR STD room rate. (we had asked about FHR rates for big Tower Salon Suite - $765 FHR vs $600 thru hotel direct). Seriously now, the FHR rate could even hurt my chances of obtaining any comps or casino rate reductions.

IF the FHR rate is based as a percentage +/- Wynn's own rate, it doesn't explain how it increased while Wynn's rate remained the same (to which the FHR rep responded that thats what was added on for the FHR benefits, not quoted in the $161 earlier, which I don't buy). IF FHR has a fixed rate, there is absolutely no explaining the jump at all. I can't seem to find a way to justify the increased rate at all, and that's the second time I have tried to book a rate, and then had "surcharges" added for FHR benefits (first time a couple of years ago, last time I tried to use FHR). Keep in mind that I did NOT ask for new rates for the other 3 hotels when I called FHR back to specifically book at the Wynn, perhaps they would have been raised as well?

Is it me or is this just another bad example of FHR rates? I can understand the quotes coming in at nearly the same price as direct, but over $100 higher is a bit much! Maybe I just got a bad agent? Or one who perhaps could not explain the rate changes, so just made up a story about a "surcharge" for FHR bennies? What gives?

Between our increased use of SPG Amex, MR limitations, our inability to use the 2 for 1 Bus fares even at full rate, failure of concierge to obtain dining res, and our experiences with FHR, I am considering downgrading our Plat to Gold. Seems a shame how badly Amex has degraded what was once a great product.

Robin

I'm fairly certain that FHR rates are negotiated rates that are only changed on an infrequent basis (probably quarterly or annually). In my experience FHR rates for a particular hotel are quite stable.

By contrast, all major US hotels change their in-house rates on a daily or near-daily basis, using inventory management software. So the hotel's own rates (and the rates they offer through 3rd party web sites) fluctuate constantly depending on room occupancy levels.

International hotels often have relatively stable rates, but more and more are switching over to the US-style variable rates.

For that reason, FHR rates are a real crapshoot. Sometimes (in my experience, rarely) they are better than you can find elsewhere. Even if you can only get the exact same rate, it's still worth using FHR because of the extra benefits.

You aren't paying an extra fee for the benefits. I think the rep just made that up in order to explain the discrepancy in pricing. I suspect they get a lot of complaints all day long about the FHR rates being too high, so they try to placate callers with some kind of explanation.

Why the big rate jump with Wynn in the course of one day I can't imagine. Possibly the first rep misquoted the rate. Possibly the two reps were quoting you for different room types, different dates or different numbers of occupants.

I've found the FHR rates to be a real tossup. Right now, I'm booked at the MO in BKK for the same as the rate I was quoted originally, which is worth it because of the breakfast. I'm also booked at the MO in Chiangmai for $100 or so less than the hotel's own rates, which is obviously a very good deal. Sometimes the higher rate differential is more than the freebies.

The Vegas hotel market is such an oddity that I think its unfair to use it as a test bed for FHR. FHR rates seem to be, as mentioned above, set in stone for the year, or at least season. In Vegas, where rates jump about daily like nowhere else on earth, you would expect it to be off the pace.

I am currently holding 3 FHR bookings, and the pricing went:

Ritz-Carlton Berlin - same rate as the cheapest web rate, but that was room only. So I gain breakfast for 2, the free afternoon tea amenity and possible upgrade. Over 3 nights for 2 people, I'll save at least Euro 120.

Chewton Glen, Hampshire, UK - £40 per night cheaper on FHR, plus breakfast, plus a free lunch. Saving of £120 for 3 nights on the room plus probably £90 for 3 breakfasts for two, plus £40 for the lunch - a total of £250. That is almost my entire Amex fee back in one booking.

Four Seasons, Provence - Euro 45 per night cheaper than the Bed & Breakfast rate on the website, so saving of Euro 135 over three nights, plus US$100 spa credit plus possible upgrade.

By the way Pickles, my best ever FHR result was at the MO in Chiang Mai last November. As well as the rate saving, we got a two level upgrade to a ludicrously huge villa. The free lunch amenity was also a treat - it was a massive (albeit set) affair that went on and on, the food just kept coming.

I would echo what has been said before. FHR rates can be good in particular during high occupancy times.

I have had good results with FHR rates in recent history at the following properties (from memory): FS Cairo, FS Singapore, The Datai, RC Battery Park, Grand Hyatt Hong Kong, Grand Hyatt Taipei, Peninsula Manila, Bayerischer Hof Munich. Rates were in all those cases cheaper than the online bed+breakfast rate, sometimes around 100 USD.

In other cases, the FHR rates were up to 200 USD more expensive, so we have used other booking channels.

I agree that FHR rates for LV are probably not the best things to look at when evaluating the FHR program. I for one have used FHR in the past but always check the price difference before I book. A current trip I am working on has pretty good FHR rates:

Ritz-Carlton Laguna Niguel
RC site has a price of $475 for the garden view room
FHR rate is also $475 for the garden view room with all the FHR extras

St. Regis Dana Point
*W site has a price of $395 for the garden view room
FHR rate is $394 for the garden view room with all the extras

Basically the prices are identical plus you get all the FHR amenities. Not a bad deal IMHO.

Hello Raffles and thanks for the interesting information esp. concerning the RC Berlin.I`ve just booked a stay with FHR (or AXC?) on the RC website.But I did not find any amenity like afternoon tea.Instead of that,the offer always is free lunch for 2 once per stay and a credit.Or did you book with the Amex concierge?The Amex online booking site did not indicate any amenities but a possible upgrade.

Hello Raffles and thanks for the interesting information esp. concerning the RC Berlin.I`ve just booked a stay with FHR (or AXC?) on the RC website.But I did not find any amenity like afternoon tea.Instead of that,the offer always is free lunch for 2 once per stay and a credit.Or did you book with the Amex concierge?The Amex online booking site did not indicate any amenities but a possible upgrade.

Sorry, I made a mistake in my OP. I've checked the Amex website and you're right - the amenity is a free lunch, not a free afternoon tea.

The upgrade if available and 4pm check-out are automatic benefits at every FHR property - don't worry if they do not show up on the RC website summary.